$8 final milk price likely
An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.
Fonterra chairman John Monaghan says a lot of work goes into delivering a globally competitive milk price to farmers.
“A competitive milk price doesn’t just happen,” he told the Fonterra annual meeting in Lichfield yesterday.
He reminded the 400 shareholders at the meeting that last year’s farmgate milk price was $6.69/kgMS, third highest in a decade.
Sales outside the Global Dairy Trade (GDT) platform added 10c/kgMS to the payout last year; GDT sales account for 42% of milk price auction.
The combination of these sales and Fonterra’s ability to keep milk price costs below the rate of inflation, equates to an additional $750 million paid to farmers every year in higher milk prices, says Monaghan.
Monaghan pointed out that there had been a “structural change” in local milk prices since Fonterra was formed.
“We’ve gone from being paid about half as much as our global peers to the point now where we are consistently paid the same or thereabouts.
“It sounds arrogant to say it, but the fact is that simply never would have happened without a strong Fonterra.
“For a time this year, NZ farmers were paid the highest milk price in the world.”
A higher milk price poses a challenge to Fonterra’s ingredients and consumer and foodservice businesses; they were competing on price against US and European dairy giants that had lower input costs.
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
World Veterinary Day falls on Saturday 27 April.
The Director General of MPI, Ray Smith says it's important for his department to celebrate the success of a whole range of groups and people around the country.
A small company which mobilised veterinarians around the country to deal with Mycoplasma bovis was one of the winners in this year's Biosecurity Awards, held at Parliament.
One of the country's top Māori sheep and beef farms is facing a five-year battle to get back to where it was before Cyclone Gabrielle struck just over 14 months ago.